In a function, delegates from fifty nations gathered to sign on articles that will settle issues regarding the share of each member and the initial capital of the bank. The founding members of such venture include “UK, Germany, Australia and South Korea”. Moreover, the countries who oppose “AIIB” did not take part in this function; U.S. and Japan catch a prominent attention amongst them.
The standards of the governance “at the new institution” were questioned by the U.S. for the latter claims that the venture is simply an attempt to promote the “soft power” of China. Therefore, the U.S. did their best to stop others from joining in.
The China led the initiations of creating AIIB which materialised last October. Twenty one nations joined in as members, whereby various infrastructure, transport and Asian energy oriented projects will be funded.
The B.B.C News reports that:
The standards of the governance “at the new institution” were questioned by the U.S. for the latter claims that the venture is simply an attempt to promote the “soft power” of China. Therefore, the U.S. did their best to stop others from joining in.
The China led the initiations of creating AIIB which materialised last October. Twenty one nations joined in as members, whereby various infrastructure, transport and Asian energy oriented projects will be funded.
The B.B.C News reports that:
“This is not just a diplomatic win for China; it serves an important economic objective too. China wants to move away from building infrastructure at home. Its engineering giants need somewhere else to build ports, roads and cities.”
Consequently, China has found ways to fund its projects of building its “21st Century Asia” which will coincide with the “Beijing master plan” and China will rule with its core influence.
B.B.C remarks that China is “flexing its muscle” under “President Xi Jinping” in order to take the place establish itself as a powerful nation. However, some observe that if U.S. had taken initiative to reform the “existing global financial institutions”, the China wouldn’t have come to power so soon.
The China has grown over last thirty years at a “breakneck” speed which has altered the “distribution of power” in the financial institutions. Moreover, they “no longer” reflect “the reality of the global economic landscape”. A British official source informs that:
"If an alien landed on earth they would be puzzled by its international financial institutions as China is grossly underrepresented."
The gathering was held at the “Great Hall of the People” in the Chinese capital, whereby the signing ceremony was celebrated. The association articles which designate the “legal framework” of AIIB, was first signed by Australia, whereby forty nine other nations followed. In fact, seven other countries are scheduled to join in the venture by the end of this year.
The countries taking part in the AIIB signing ceremony were mostly Asian, Middle Eastern and Latin American countries, who took initiative following the launch of bank led by Beijing – “a diplomatic and strategic success for China”.
Martin Patience of B.B.C informs from Beijing that:
“It is one of several institutions China has created to push its own economic agenda, largely driven by frustration over its lack of influence in the big global financial institutions such as the World Bank.”
The initial authorised capital of AIIB will be “$50bn (£31.8bn)”, which will eventually go up to “$100bn”. Moreover, China will retain the largest shareholders place so as to have “26.06%” voting rights. The second biggest stakeholders will be India, with a total of “10-15% stake”, which will be followed by Russia and Germany in the consequent places.
References:
http://www.bbc.com/news/world-asia-33307314
